Lethbridge Real Estate - Market Report for January 2009

By
Real Estate Broker/Owner with MyLethbridgeRealty.com

January started as a month of fresh beginnings for many and before I report on market stats, I think it is wise to note a trend that I feel will skew market statistics slightly this month. Occasionally, sellers will pull a home off the market over the Christmas holidays and relist it for sale in the New Year. I feel this flood of "new" listings may have artificially increased the total number of new listings for January.

With that said,  here's the skinny for January 2009:

1. Currently there are 613 homes for sale in Lethbridge (435 single family, 152 condo, 26 mobile homes) which is up 47 listings from the beginning of January.

2. 50 homes sold in the city of Lethbridge in the month of January (Down from 55 sales in December)

3. The three most active price ranges for sales board wide were $160 - $179,999 with 12 sales, $180 - $199,999 with 8 sales and 3 ranges tied at 7 sales in each ($200 - $219,999, $240 - $249,999 and $350 - $399,999)

Credit Crunch

So my question is, does the decrease in sales imply that buyer's are still stalling and waiting for the market to bottom out? I don't think so. Does this mean that there are a lot of buyers out there trying to get into the market and are not able to obtain proper financing due to the credit crunch and tighter lending practices? I say BINGO.

Every day I see several listings that were "Pending Sale" and are now "Reactivated". So what is likely happening here?

 

- Appraisals are coming in less than the buyer's offered purchase price and the banks are pulling their financing

- Diligent buyers with pre-approved mortgages are making offers, and then the banks and brokers are putting out the hoops for them to jump through and they are not succeeding in the jumping contest.

So what can a buyer do to get into the housing market despite the efforts of a gun shy financial institution?Stack of Paper

1. Expect to provide every piece of paper imaginable to your banker / broker with regards to your finances. Communicate and co-operate with your mortgage specialist / broker and make sure you provide all the information they request. Remember, someone is putting hoops out for them as well.

2. Have a plan B. Talk to a friend or relative who may be able to cosign for you if you suddenly can't qualify on your own.

3. Make sure your REALTOR® performs their own market analysis on a property before you make an offer on it. Even if it's worth X amount of dollars in your mind, it's the bank's opinion that matters right now.

4. Be persisitent in your thinking and don't miss your opportunity to own a home simply because the banks are making it more of a challenge!

Visit me for more information on Lethbridge Real Estate

 

And for those who follow:

My predictions for January were:

205 new listings, 89  solds

Actual was:

462 new listings, 76 solds

 

Lethbridge and District Association of REALTORS®

MLS ® Statistic Report

[JANUARY 2009 ]

2009  2008   2007   TOTAL
Total # of Listings [Month] 462 501 375 -8%
Total # of Listings YTD 462 501 375 -8%
Total # of Expired Listings [Month] 175 94 28 86%
Total # of Expired Listings YTD 175 94 28 86%
Total # of Sales [Month] 76 167 184 -54%
Total # of Sales YTD 76 167 184 -54%
Total Sales Dollar Volume [Month] $16,982,200 $40,018,306 $37,662,640 -58%
Total Sales Dollar Volume YTD $16,982,200 $40,018,306 $37,662,640 -58%
 
Total # of Closed Sales [Month] 76 167 182 425
Total # of Closed Sales YTD 76 167 182 425
Total Dollar Volume of Closing Sales YTD $17,215,200 $40,018,306 $37,017,640 $94,251,146
Total # Sales Pending 1 0 0 1
Total Dollar Volume of Sales Pending $ $0 $0 $0

 

 

 

 

 

 

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Rainmaker
532,794
Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

50 sales in January.  My market share was 0, which when expressed as a percent is still 0%.  I got people who want to sell, but none who want to buy.  I think I am going to retire soon. :)

Feb 13, 2009 09:13 AM #1
Rainer
24,264
Liz Toles
MyLethbridgeRealty.com - Lethbridge, AB
Lethbridge Real Estate

Robert: Ouch! Hang in there... I think Januay was a tough month for more than a few! Although retirement sounds nice too : )

Feb 13, 2009 09:34 AM #2
Rainer
205,587
Sylvie Conde
Sutton Group-Associates Realty Inc., Brokerage - Toronto, ON
Broker, Toronto Real Estate

I have a couple of buyers still waiting for better prices, even if that means waiting for interest rates to go up again.  I have others who want to buy now, but don't qualify for as much as they thought.  Lenders are definitely more careful about their lending practices and are taking fewer risks. 

Things will get better.  Keep the faith.

Feb 14, 2009 02:46 AM #3
Rainer
24,264
Liz Toles
MyLethbridgeRealty.com - Lethbridge, AB
Lethbridge Real Estate

Sylvie: Frustrating for you I imagine, in the first scenario... when they realize what a small jump in interest rates will do to their monthly payments, paying an extra $10 - $20,000 for the property now, seems like the smart move.

Feb 14, 2009 03:00 AM #4
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Rainer
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Liz Toles

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